MarketAxess (MKTX) 6 Aug 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the MarketAxess Second Quarter 2024 Earnings Conference Call. [Operator Instructions]

As a reminder, this conference call is being recorded on August 6, 2024. I would now like to turn the call over to Steve Davidson, Head of Investor Relations at MarketAxess. sir. ahead, go Please

welcome . MarketAxess and Earnings Quarter Conference Call. to morning, Second the XXXX Good

call, Concannon, company. will Financial the you quarter. a Head For And Chris results. Trading review on strategic you will of Fiszel our update the with the provide then performance financial on markets will Ilene Officer, the Solutions, Rich of Global Chief Schiffman, update Executive this Officer, Chief Bieler,

today's call I regarding me what that financial Before from their is materially the remind statements The These and to call future uncertain. may actual company's statements. by belief include let Chris, may indicated represent turn over that, nature, company's in statements. are differ forward-looking condition results forward-looking you the events those

the of that in factors the XX-K of and results, year risks future company's December discussion Form website. could the XX, disclaimer is annual see I a the of direct quarterly factors would please for report available on in morning also ended For to XXXX. some release, description our was affect our on this issued risk forward-looking the now our and earlier statement earnings which read you

call Chris. over turn Now me let the to

us to morning, thank for our you Good second quarter and results. review joining

strategic was $X.XX. Slide X and total to including share per of We growth, the revenue Turning benefit of update. my earnings XX% delivered acquisition, the diluted Pragma

commission revenue international credit execute to our delivered most strategy growth this across continue our in with and We growth strong quarter products, areas. product in revenue solid

trading of product disciplined complex in continued XX%, expenses areas. Pragma. We be our reflected most credit our expense operating July solid increasing yesterday, which We with the around management our metrics growth continue impact total across released including to

continues liquidity to Open the credit that U.S. client disappoint, institutional in RF differentiated reflects business, dealer While estimated believe share e-trading underpinned Trading in our our leadership our by continued we market our core to space.

X-Pro. of growth market clear rollout our to through return global a strategy to have share We

We share U.S. also grow credit pleased our market outside are continuing of are credit. global to the space in that we e-trading

I CFO. business. time welcome recently, hires hires of of have the already she she to more a significant Global would the new key enhance on first including all bench a broadly, her several short here, sales, that Solutions, new has the a has significantly great we call been Head strength Markets as like made impact that And U.S. Ilene made to of earnings new a Emerging Client already Head MarketAxess. Head at deep and In

investors gyrations not guided into long-term read estimated in the and July. as market we much to at We look trends saw have too month-to-month always in our share

and out share. trades Slide high-grade priorities up respectively. XX% is The and year-to-date to only segments dealer-to-dealer of XX%, trading trading, our strategic X up have trading fastest-growing Client-to-dealer U.S. XX%. grow portfolio been lays market

Our we allocating in resources is segment dealer-to-dealer more estimated trading dealer share the to are segment down solutions. with slightly, this and expanded attack

growth sizes. rolling been and for we which products clients. and have in last business segment client-to-dealer capturing over we have out X-Pro, in be executed across modernized, reignite clear trading strategy protocols This user few trade as periods our interface, a days, in our seen we our more volatility, portfolio performs in While better share through the larger to have strategy stages of much client-to-dealer by easy-to-navigate will our

and make our sizes designed trading and traders cloud-based out giving full is and better to and of technology, by data strategy and analytics trade our achieve outcomes. enabled AI-powered built attack clients features a suite help to of free access new proprietary changes to we Furthermore, enhancing easy functionality automation weeks. so building on X-Pro to portfolio high-touch is data. improve our is larger solution, in introduce X-Pro, X-Pro are it tools our With trade algo to trading with workflows unique matter

completed The important offering is have enhance can our we the step a number with slide, high-touch trading last of of solution. several global quarters. next As PC steps to on rollout for the our in see strategy our multiproduct you already launch over our the portfolio X-Pro

likely We tool, our launching a predicts are AI counterparty also is a counterparty is trade. that selection which selection dealer smart which tool win most to

available Last, to algos our with and the of dealers. will which we algo, rounding launch out take both our custom are new clients be

both leveraging with across a yesterday great connecting example announcement to deep available how ICE external are the is we aggregate of liquidity, Our platforms. liquidity to platforms

for up are and objectives. trading to provide tools achieve they need options order clients them trading to in We our network opening with the their

marketplace provides Our protocol that liquidity interoperable clients to through goal create robust to access agnostic our solutions. an is

the across Slide X that drive multiple our and regions highlights products. cylinders growth, across

Emerging we our like, would volumes network growth While e-trading. credit not growth story U.S. are where slide. markets story growth this of perfect a shown have regions, global is truly we example for as multidimensional across with as all multidimensional this the largest been on a

strength emerging more Slide markets on outstanding detail the of X our franchise. provides

EM XX%, Lat commission XX%, share emerging market markets we emerging with regions respectively. in of growth XX% and eligible Our markets across volume and markets revenue increased Am activity TRACE XX%, and are trading record up seeing trading emerging with estimated strong APAC

significant increasing a XX%, The focused. perspective traded currencies down local XX% sizes The reflecting these currency market platform. local trade markets of represented past trading. the rates experienced and involve mostly local activity markets markets currencies the on local volume local on top markets an of have trading basis, largest are the constant breadth EM X year, expansion from a across addressable because EM in larger opportunity we are from of Over the

drove protocols with are suited trading generated also which for is local in markets request record or growth quarter, up activity markets RFM, One clients in of fastest-growing markets. in We our trading perfectly larger is trading block our local which trading where data. local sizes limited the in XX%, RFM our market for

of about still excited is ahead the electronification. opportunity us, We markets believe we very which are in stages of early emerging very

Slide will priorities strategic success. X future our highlights our that drive

our our ingredient driving on income to of trading AI-powered example, experience, fixed solutions. enabling high-performance growing and our focused innovative We technology across our data client solutions note AI automation delivering important is a a is strategic these revenue, key that enhancing for It business, are team In use and culture. data network priorities. algo our and CP+,

our acquisition. platform, also addition, Pragma was helps part our In of power AI algo to which

tool Our to our with AI-driven high-touch our integral strategy AI-enabled of Data a key component market decisions. selection depth, trading clients portfolio dealers. selection targets our designed finally, trading that with make portfolio provide indicative investors helps to tool And that is block-size Tradability is dealer

our turn markets. let Rich to me call update an Now the with you provide over to on

Slide trade X-year second XX% trade local XX% we currency XX% Trade CAGR this and international strength volume trading A last versus of up CAGR increase a a up in count of X-year currency Thanks, emerging products by the volume increase XX%. growth driven X, our Chris. trading was generated year, across count highlight key ADV, expansion versus of was in geographies, client business and and with in a in protocols. the markets quarter. with year-over-year, hard ADVs. was up On strong XX% trading growth driver XX%. in strong XX% We Trade a year, last of

hedge generated private also trading systematic funds, We seeing segments, which XX% client up strong We from our up banks. flow billion volume, important in volume growing credit from are XX%. including represent XX% dealer-initiated from client funds, and of $XXX these segments, contributions trading now total

the diversification product municipal strong X.X% in in estimated seeing also X.X%, are of We with bonds year. market prior share up from record

We TMC growth. further available soon be to expect additional liquidity from to the market ICE support share

signed the have tax-exempt taxable our now largest up and on platform. municipal trading We top for XX dealers

XX%, billion prior A Hedge hedge year. provides total XX the $X Trading liquidity record of strong on the continued increase Open in from Trading and year. expand an Open market-leading update from X% provided all-to-all quarter, ADV XXX a has with in up Open the the funds our XX% to the pool. count, fund Trading, liquidity volume ADV platform Trading our from quarter, activity credit year. prior line in trade with XX% $X.X the through in trade generated prior up Slide of prior on year. billion, growth share Open was was

suite secondary in on the Lower shown products market of source driven Trading, continues lower the Open liquidity lower automation to this largest reduce of Adoption the Slide volatility to markets, shown price grow, diverse dispersion credit XX. Trading the as our pool. liquidity on left be slide. in in Open and as of to opportunity price our of single improvement continues the continues U.S. by

record a with count. We record responses quarter from XXX and of credit count. firms. of represents XX% our client an algo and growth a volume automation trade now of XX% another There respectively, trade trade volume in XX% credit of XX%, and total experienced automation trade X-year CAGRs and active Automation strong year-over-year. million were total XX% XX volume record of increase dealers,

financial to turn review to our Now performance. let me call the over Ilene

Chris, more for excited opportunity Rich, remarks. be you, ahead you, about thank Thank cannot and kind those for the MarketAxess. I

second prior year. of the XX, Turning We a from acquisition. delivered to $XXX from quarter Pragma the Slide our $X summary financials. of These include On up we revenue our results. million, provide XX% million results

across especially for the as The second generation quarterly lines XQ with This X%. up of strong of new Looking being increase product by was higher driven CP+. information was experience revenue only revenue to was revenue adoption commission was suite, we revenue. continued services Record $XX each at 'XX our in data turn. highest commission level million, our contracts

of up contributed $XX interest $X across environment, effective was of The foreign rate diluted The was and to revenue million. reported XX%. was in loss. an was holdings driver million Post-trade which earnings other favorable services share from investment and tax due income per rate by the $X interest This increase of offset million, up cash was currency partially million our income income portfolio interest we $X.XX. a transaction XX.X%, $X net largest

XX%. to these high and areas representing on capture. and revenue eurobonds $XX was offset was across X% lower markets for share growth commission estimated U.S. $XXX emerging solid million quarter. and we product increase our yield. revenue XX, due On commission Growth high up or of grade detail increase up across XX%, provide The in our of Slide Total commission the was by revenue credit fee market more partially X% million, an

driven fee to the total and plans, protocol addition fee activity decline high-yield trading partially of in the dealer prior of product consolidation X was plans. The principally reduction portfolio driven The trading. fixed in increased new by by migration and lower and the fees specifically from variable year by bank operations capture desk credit global was distribution offset mix, principally fixed fee

XX. a expenses. provide of to Turning We Slide our summary operating

$X million Pragma. included million Second quarter $XXX from operating expenses of

the our We are integrating organization, the we that into drive Chris many are and our priorities earlier. leveraging well in DNA underway to of Pragma high-performing highlighted strategic of expertise technologists their

of outstanding Based has million. Slide the year XXXX year of XX, through year, expenses capital the timing aggregate flow. share come share the expenses of under the the remains for XXX,XXX back the through addition incremental announcing that Board $XXX shares repurchase million. range, to program, we a low in we on for that repurchased end we repurchase our in management now on of an This are first below a million million approved $XXX existing $XXX is million expect program expecting authorization XXXX. and the costs slightly of year-to-date stated $XX are a full cash our We July half to new total of the our $XXX total Today, the to On current update of in we $XX our provide half previously and million.

of going Board's opportunistically, a shares dilution The reflects is confidence beyond offsetting compensation. repurchase the newborn outlook indicator and and of willingness the authorization annual just company's clear the from performance stock-based to company, the in more

strong approximately U.S. outstanding repurchases. During under investments $XXX the equivalents and Balance XX. no paid borrowings be sheet June trailing cash, XXXX, XX% through share We XX as to facilities. quarterly treasury our quarter and corporate bond second credit continues the months, and of income with of we as million cash had dividends out of net totaling

as the months quarter. generated We balance about being disciplined investing the to trailing of increase over future believe XX% in last million of free at are flow of while time growth, right striking drive XX $XXX cash capital. same stewards over the We we an

back to call Now turn let comments. the closing me for his Chris

we In Ilene. continue the Thanks, XX, strategy Slide solid financial quarter. summary, and to our execute on performance delivered growth second in

increased is for the trending in combined volumes indicators with recent are us. of of trading seen potential XXXX improving We have and an and the up. increase an for macro rate the backdrop These in all in volatility increase factors, velocity market cuts

of X-Pro client base continuing the are to most platform products. the extending and We global rollout our by across

are plan our market to grow We executing share.

to Our growth. client coming and deliver continues levels higher strong Last, quarters. geographic franchise well growth are expand, protocol we our product of diversification to continues to the in and positioned drive

Now the we to your open would happy for line be questions.

first of Allen with [Operator Chris question from Instructions] the Our line comes Citigroup.

wanted the ICE bit I little deal. on a dig in to

really retail-oriented Just to the really of possibility probably what suite. provide flourish to Chris, how in liquidity you if connecting your there? of it a terms ICE just necessary Is color in came pool then terms to opportunity is you that just update of other about. the and connected And pools forward? any liquidity referred that color to on could -- benefits algo largely connect moving of Is in Any any a how towards side. the you,

Sure. Thanks, Chris.

we're yes announcement. ICE about excited First, the very

a backdrop. Just little of bit

with technology the We relationship from we with data. purchase acquisition long-standing by ICE owned Pragma, of to ICE. the NYSE sell data a recent an have and relationship We ICE. existing around ICE Separately with had Pragma some data

the but there So see in really came also that in ICE partnership very RFQ, design destination the at the this our clients both on of and strong again of just platform. relationship liquidity clients, out a request

connecting of the They have their clients. liquidity platforms X that leading to are benefit

very client to So it's exciting a response needs. really

MarketAxess. in As strategy at it we is mentioned, a shift here

in shift which We external are destinations, unique network to a strategy. opening is up our

the and answering protocol in find we're we our to and on internally clients' and the We right that's externally here. are said that protocols calls opening want have We remarks both really prior needs, what agnostic. for

institutional We are ICE's and and we distribution. of see private distribution retail the very our client leveraging benefits strong

strong important as X benefit clients putting well pools distribution. both our really liquidity ICE's is an So those together for as

want to you add to do Rich, that?

Chris. Thanks, Yes. Yes.

yes, So pools. about excited we're complementary liquidity one this really because it's

bring great more specialty some a a for liquidity to for to institutional odd us it's our way that's So of ICE TMC lot clients. that

from have those really specialist -- to XXX into especially do bonds very to systems, in. we that we back workflow, Chris call love ability heard list institutional our micro our lot size RFQ TMC it as them wanted of is but the said, get that processed what in under and And that efficiently they clients, odd the lot and a liquidity, they

it all for So this through Trading. allows our us clients to bring together Open

our always have don't have different. do way don't their anywhere anything just So But get orders put to they to go expanded to pool. They they They now else. their system, have. liquidity access they inquiries the into this

a it's great combination. So

liquidity area is be us, retail will much mean on we in where I a this corporates our as have of introduced can to of interesting as attractive clients. that's, which grade through area investment price, that institutional It stronger to another for very well. course, private trading is banks, some flow but

and of your second to the And destinations. question Chris, accessing half around liquidity to respond additional just algo solutions

the technology to both external. have add well algos, acquisition internal Pragma, the the as now With as wherewithal and destinations and our we to internal protocols of

a So our this available up protocols algo does both through external a of technology. that have open and for variety variety to opportunity of destinations and internal clients the

comes Mpley with of Our next Patrick from Piper question the line Sandler.

they're spreads your the curve on in a favorable bit for you widen becoming look guys. last few in days, dynamics seen more a it touched So opening yield and we've you remarks, but little little out like

protocol it's expectations talk this over whether impact expected So client utilization? terms is have could to you sustainable And last and days the you of what you've you? how maybe just about any few in seen engagement, about

desert walk an through see volatility, the of I'll by you and But very a saying start Well, trend. suddenly you're oasis predict is still when a to days early excited. X little too you Sure. bit

ETF participants, across seen We up. have particularly we've we've activities days, market certain pick the seen are so among trends our positive excited that. X obviously about during seen makers, platform activity the we positive There's certainly their --

market, to shares just million of XX overall If at HYG you million ETFs from a average day fixed of day. a income go activity shares an look you in the XXX the over saw the

So shares call a also of, day. from trends it, went shares to an and LQD a million certainly day just over XX positive average million XX

of the backdrop playing we're macro of the positive seeing on many out improve. our attributes So are and volatility platform,

I that event. out economic events would these in say you volatility, volatility something the am volatility and I or more in encouraged question that this is, like driving volatility this short-term we've is sustained past. more a seen is volatility geopolitical-driven longer-term it play volatility tend versus the to have are spikes

overall backdrop rates days again, and But X this is the seeing the certainly, of environment only volatility. encouraging. encouraging macro we're So is

Rich, add? anything to

to looked closely when the to you yesterday, say, and on see day comp around versus A importance the of like course, yield, IG that's with also comment in on yesterday and give getting see above some that look that and unsurprisingly, where and And a tip about Yes. XX% for OT we see. just workflow market we typically choppy, balance. we relative high of caveat going provision we yesterday, color, X that's well liquidity numbers was to OT at, starts when what activity, up averages liquidity days, the of

you But where more make the on the to the a trade see need PTs clients in back calm a start but versus that's shift example. I'm best doesn't get get a throughout a a I get that, this matters this how month, do in protocol I do lot than vol a most you to into It sure how on waters. trade, what pricing am indicative going pricing sustainable about, relative more efficient and go about basis, obviously. it to environment doing in responses for say happens a lot PT, higher workflow not is think I when for our what I mean away, to I

Fannon from Our Jefferies. the next Dan of comes question with line

hoping clients. has subsets expand certain on rolling to out I changed how rollout selectively this you could of the was X-Pro of as you've behavior and been

change increase So just in behavior, in activity been curious the has as what to adoption? and/or post velocity

Dan. clients new Sure. really saw our started that pretty our ticket need from of X-Pro. about active clients activity and Again, they our workflow technology this saw the through a the among excited most year the a high largest We're count over over we presents. ago, -- X-Pro. rollout Thanks, they of where largest we the traders benefit XX% seeing We're for trade of and a had the coming now it targeting

So a just very rollout across successful traditional RFQ.

second continues second The stat. quarter third in targeting certainly I'm report really X-Pro an portfolio the here now And XX% just starting through portfolio trades And rollout volume Again, portfolio phase is came overall, July. of trading the of of about seeing, last the in X-Pro in to happy year. was that our the into up X-Pro. encouraging quarter trading and second is quarter, the

now is market. it's as product allows platform, both seeing trade which market the our EM EM, rollout to PT X-Pro solution, portfolio the call across finally and global Europe. we exciting have for X-Pro clients growing headed available also where in to across trading the Global we're We're what well The Europe euro as launching demand to and in

days the but what So for signs capable still of X-Pro of. very rollout is encouraging global early X-Pro, of

delivery, it's tech the legacy more with functionality and more our clients' address in cycle obviously that which allows much rapid rapid, capacity, cloud-based much in additional deliver us rapid to tech needs the certainly a to is and development around high, able development quite rapid is for turnaround than but quite platform, particularly new pace. new a technology More more given the importantly, new we're

roll globe. have are the benefits we that So the we as of predicted playing all out out across X-Pro

comes Our with next Voigt of from the KBW. Kyle question line

into Maybe sizes. moving just question on a the larger concept of trade

to high-touch You guess, I that chopping then trade have may about here into speaking quarter offering with newer smaller been for initiatives what And term? help between does X blocks do so. Auto-X, market you've evolving near initiatives sizes. for long move bigger you those or view how X see block Adaptive the market past those the you which up how helping And the electronic opportunity the over as block the run? compare that that

Sure.

than just size. market, block it the into all, TRACE first greater is On over of to put of the trade million $X market XX% in context,

still the market largely segment it's So largest of the nonelectronic. is that

There so market. solving phone-based products and from is set acceptance the out new an goal to the electronic clients. tech to new an moving transition of provided an to they replicate chat as solution actually but and is form our electronic we roll And blocks phone current out for our

protecting ingredient information key leakage probably from So we clients. that from the our is hear

or for where leg solution, those analytics out the embedded Our trading into And X-Pro, high-touch of really we what the solution targeted sizes. in much that unique also was portfolio portfolio proprietary platform can trading high-touch first high-touch solution the with enrich trade pre-trade our pre-trade dealers. data. more with you a It's that we but we're analytics in rolling solution several additional our carrying is one block target do we

request data a is key one Selection AI-based and out win is on for at dealer more really trader is that I'd information tool, respond not likely acts looking your only elements are, Dealer price. decide platform, activity dealer but helping Two our who to which our point

direction a size well price your the both which is that direction really trading. the as is data the The the new gives as puzzle of price CP for other real-time piece designed both size. product It trader Inquiry, your and is called and predicts for information

critical liquidity So it's liquidity. ingredient trading of size block that block need a size are to in traders and

elements Those third in rolling in quarter. out the are X-Pro

excited attack say, entry about electronic new solutions. XX% is to that what by market, that we're that underserved the I'd So

your is algo trade sizes we're as target block correct, are to in does out market. using a also but And down market. about you quiet it method sizes. suggest, solution. clients designed in That seek Auto-X help algo up to XX And is only it is Adaptive by target crossing to launches. that now our trade liquidity less the spread, clients the our more Separately market not and slicing smaller similar without impact in And you

want to anything Rich, you add?

was you going function really to which add one, to is the both be And I strategies. to of it's pursue asked Kyle, just Yes. what market. that clients important we going of in these what's to going I think this because a gravitate on

markets the are then where dealers down calm So on flushed relatively making and giving capital a taking to if are with where large with and high-touch those trade markets X-Pro our great should they're the client way solutions risk, in go and we're advice size through orders is a it.

if I up the choppier makes to RFQs terms that market, positioning a where and much But resting again and that's tended in responding and risk them, them opportunity a come say. we've order past very off in to whether time clients of solutions, have it seen and to that's then takers great market end in someone algo we positioning, it and the leave for the And this and with wait liquidity should in a for through risk back our dealers till directly party. to the easy or use market clients to other engaging other in

kind conditions are. are ourselves what be successful being of the So this positioning both solutions and pursued, we're regardless with to market of

question with comes Alex Sachs. line of Goldman the next Our from Blostein

again. call. A the maybe it. And again details more Ilene, to back bit welcome ICE to so hoping I go to around I was partnership little a unusual, the wanted little

silos of about And be but asking it your liquidity a of both will platforms? to talk you clients break picture, or munis the revenue a achieve from And maybe bonds? structured? particularly goals pools, how economics any small think you combined seeing still share you sort split of is larger other I part could guess either the is bigger this else you are fairly the push down corporate however for So market, in that of in can terms with

It's to yes, about and And here. with make this really that keep orders was the putting Alex. sure Thanks, Yes. us liquidity Rich. clients their stay out

very to ICE to the to were institutional another where like, that's go smallest the effective investor It's on we they the want And mentioned comes As don't come an especially get to I workflow. But to earlier, in. well, in. for we TMC getting liquidity, platform like have trades. request is

Now, of can they come to done. all trades just their and they can get MarketAxess

it able us, of was being to to regardless trade. clients our they're in for keep size the attractive platform So very that looking on

With our themselves. their platforms, each Trading and respective regard the straightforward. has economics, transaction are of money trades, we fee the on Open able to trading when pretty platforms for to ICE revenue and model the it's make fees the It's collect they're

top providers the system. into will directly the stack, might that's liquidity So that way or then and the investor best and MarketAxess, on if will comes It's the markup be of from where there's otherwise, level TMC trade. coming at payment not a our the going And it net a out wins fees the taken one across the of of other. that be coming price from back of one

comes when pretty economics. the it it's So straightforward to

part available our open to there's say there's venue for that sources another about the we unique in last we're always That's connecting to add really that [indiscernible] driver was we to liquidity connecting The venues. that liquidity when bring going to then I'd other If can much platform? have, it be already has same the way. there's Is additive really the that clients. this. to to not

Our Budish with from comes Barclays. the line of next question Benjamin

one Welcome the Just to call. Ilene. for

end of thinking range low and your you're you're balancing lot there's trending margins? of same of OpEx. towards for how sounds a sort the target about Just like growth At growth time, initiatives. the wondering It

shares more back buying You're opportunistically.

about are you how philosophical thinking thoughts margin like And priorities So longer-term there? any the on expansion? growth versus

Benjamin. years. seen X starting growth growth, to to to the us of you're you're saying. us, strike that the question, right success really you've so for We some Obviously, I for And look really between see much those think invest of You've right? the balance, seen last incredibly Sure. that over everything Thanks the important right, the is from course and investments.

some And concepts, these mutually exclusive in are terms of actually, success not that right? of

investments. X One into So And something leverage with coming quarter, for with think we've good acquisition, pockets of really those able from that point, and and of that your right? instance, right? this Pragma that's those success, example happened you some about some is like that being the that different put you really efficiency what them -- see did is categories, can through to If I seen X technology. for efficiencies a of both different expenses growth to would we

go of this that have you folks about more kind detail sort an again, about expense talked some have rate of into some really important as our we hires, to expenses not they're go I'm Chris I'm from sort some yet questions yet If if of here. well. in happy into perspective. -- and sure not come also run at on look But right,

if expect, drive not to year, other in the in growth we the are another that maybe run about think of in the half rate. would of see current sort expenses We of $XX back million timing things that you

things that, And so that and expense. so expense, like T&E, -- things like are includes well marketing technology more some those as as

really the And efficient our that exclusive You focus can You are driving you organization while run these think I are disciplined, in way can that's mutually answering not right? our see in plan. concepts, growth. this I'm on a investing

William the with Schmitt Blair. from Our of next comes question line Jeff

currency EM Emerging to the to -- What's be outlook a still volumes? spot. seems real there? in for market it penetration low your years the fairly next X opportunity X local growth electronic be is bright volumes continue And to over since

platform Great And and signs is markets in focus we are market in lot we and outside one question. a growth to a our this of see across Obviously, that largest EM and remarks. opportunity opening of regions. engaged our credit the market obviously, the across U.S. Yes. market continue the on of fully had

In across in that been particular, from mentioned, in seeing local seeing you markets local platform. quarter, and up market adding was we're in growth overall our [indiscernible]. fact, as the to And sizable And our clients market we've markets. our XX% local of revenue still the engagement local

the indexes of the There and large that has India ingredient added investors, in are many to the is been key changes our index, being one index. by followed

access having investment across asset broader local a to our market do broad being and for we So markets ingredient see those that all is key very EM platform. a still the attractive arena

we've across that market. growth portfolio is trading seen the EM driver One of

the now. trading some there's benefits higher levels liquidity right portfolio we're And our in demand EM. to tool So access grade see in we in for across EM certainly, certainly, not that high portfolio at that seeing But market.

area platform, markets. other saw largely that the block-size we're the in on those record nature the of rates growth is EM seeing driven a the on liquidity The of block platform. markets in local and trading local and We from

global highly playing in demand market and So that again, very our some positive factors obviously EM out across investors. still in

question line from Our comes Bank. the Bedell of Deutsche Brian with next

how in Does something MarketAxess just Ilene, of of terms pool in at we way the to at within as change share and executed say, call liquidity will of revenue the in where dynamic change terms coming versa? vice Can the Welcome, in let's executed? space. just reporting agreement. does Maybe ICE any looking to happen share gets it back market that confines about or about think your talk the go market just your how about you're through, well. But ICE thinking that that getting realize to the you and this overall

the both based trade year the where It's question, it routing for reports an area be both in on really market that to comes liquidity. when Thanks external and many internal very We'll transparent from. flow and a our I've spent and it's share. around

So in record certainly, have liquidity of pools, muni look, particularly a in market X you munis. We the leading X.X% hit July.

on levels we're liquidity the of excited about hitting our we're So that platform. very own

seen seen liquidity which access the the we market. of We of really solves think just is clients, the rise ICE in bonds growth also they've X need broadly for retail pools market. segment connecting those have And more leading across the to liquidity that the the and

to The structure markets client play it's collection market. of when there this bond needs assets look and dedicated, I a is for out structure unique resources successfully. areas of in quite the largely it's technology assets. at And in other and we've trading being seen not being dedicated of really are are solutions where our that But

needs. another solve able and Large our platform now institutional of and we're helping are to bonds to our the relationship. through so leading liquidity ICE able access resource And access pool will those investors platform both be

take needs, revenue and the Obviously, solving place beneficiary focus. on really executed. transactions it's is of who's client be where very So we'll transparent of which getting -- that the those

the lot high the just view expect I from between And to as then X-Pro, contrast strategy maybe portfolio and to forward, in in the successful headwind or a this do counter a investment a to And pricing. on color. great high-touch yield due you be That's trading portfolio certainly is potential within Yes. trading? of realize as more going trading on mix, grade. that pricing you're pressure But portfolio as you that more also do pricing?

to Ilene. talk it's Nice Brian, you. to

with changes me had seeing share capture stable, the we're it is like, is thing say mix, first about cards? terms our we obviously, at views and we really really you start come how Chris overall, as on, his might think trading, see [indiscernible] to pricing, that product So happy Let And we And are it how July. and when overall sort mechanism. in commented is, of that, of to fee in really portfolio quite fee protocol seeing what do then Obviously, would in were the of been the and impact. know fee which or some And right? our that look at some really not XX.X% right? pricing you to want of is well. I looking the these they've on moves

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and puts different are takes there so here. And

this well. have in of I think we as remember also model fees to works terms how

grade And And bit, instance both for a you it's about just and think talked of obviously, of so high if little have Rich Chris we days. and I think the think early duration, environment. you talked

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point we relationship you it, normalizing, and see, moment over now least albeit a that a last what, seeing X was seeing And of or mix the think a what weeks rate and steepening in When just in call cuts. for if even what seeing that XXs, the years we're just where the terms it possibility Xs few the that right forward. -- you of the, of in inverted We're the really rate curve. yesterday, know I'd of X we environment, as with at pricing for now the of right, curve in X we're were forward yesterday, ago, wasn't certainly about we steepening

factors you So are for together again, and instance, how all have to for for put signals works there are pricing how when you we grade. duration macro know, and in this to see for terms we plays But those think put together, those about those us, positive our you going that out. of when us high

grade, on high weighted every remind call about there, average in maturity is of right, right? years we benefit approximately, if sensitivities in the X-year the increase $XX to it, so traded And a platform

right? there's the So capture high-grade then also points yield is yields, lower, $X to say million. seeing per of to think basis the the sensitivity we XXX curve, about if $X approximately fee first a the benefit And

high goes So of when can see fee you $XX to put those together, you $XX grade depending on that's in on, in capture. terms that what

of think say, fee terms lots puts think our I model. of would mind there's takes But just cards. I overall, differences that not in and keeping seen we to about stability in So the have here the to of

know to you that? anything add if I on wanted of don't top

targeting, sizes with clearing trade. that larger embedded trade caps a is and costs that much are There capture. don't Yes, targeted add exciting to to because variable come trade the certain solution Brian, opportunity high-touch we're that dealer traditional associated But is direct on I'll our just it's what's have rolling obviously, with dealer, fees. about out. more to we that It

the aren't our but And margin enjoy there. it the from traditional the so quite -- capture perspective attractively a that variable rate at platform, scales on costs we

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next line with Our Clinch from Simon question Redburn Atlantic. comes of the

that to to would a in penetration you you X was for a of what in Have -- days, was the terms provided going market if that seen hope things the I of could say, similar just you I'm of any making, the Chris, term, the about real I comment be the would on overall know if lot you're dynamic volatility. comments direction see. period but short you could wondering wondering in trading portfolio heightened past change back it's liquidity That useful. moving be of I and would dynamics protocol the in, sort there? in of the

Again, question clients and vol I cost. think for a a our it's is to what vol. X adopted of caveat remain just a X low key we're days, so tool I high portfolio days. It's of do to will use, trading our clients tool really in by seeing do and want times in both

these of of do gap bond They we've gap trade spreads evidence environment, as out spread. in a both a spreads environment. single As seen in this gaps as portfolio in type in due. this out And well

just becomes different what trade So days X a was from it it ago. just

So days, we activity. have levels seen X lower but PT of and it's, again,

volatility harder for That mid-market seen portfolio several versus they the that time, said, market But over are literally when and last the environment clients execute have trading, inflows there's last we've in quarters, quarters. trading, to in over several spreads the experiencing been period volatility those in the we've and outflows heightened depending those are portfolio like long low more trading, capital our the tightened either session-based of capital quickly they execution. obviously, exit enter on or like trades in use to this, where of may an certainty environment,

So what thought would we again, certainly the predict X happen volatility, days in playing trend, a out market. higher but we're in does seeing not

going use a just just of Great. And sort about us I flow. the follow-up. you Could how You thinking of guess forward? your a cash free sense capital you're give allocation

in million you've here. $XXX buyback got authorized -- clearly of You've

there But change work? speaking, looking to that you're longer how putting balance generally term, sheet, cetera? about to thinking the et you're how So at any is

really I there's I would look driving value we how know necessarily. capital right, Yes. I with Thanks if much would mean capital for and think you I that question. so our about that a say for say it that the optimization, shareholders optimization, change at and don't

to strategy really would are and cetera. company the by new growth, I ability us the to right, a really and continue in and in Chris that that I et execute confidence as of generate our Board's saying cash, does about. to we we the talking on to right, does my continue authorization the the start fund performance said the future comments, reflect, self-fund growth, to investments, make cash-generative allow have pretty strong model, been that team And as

There's really, exploration flexibility, on And this authorization. about no right? is what is this

dividends, to market it buybacks to opportunistically return gives we're for going it and the to ability buyback right, So makes sense the of capital us our be continue in terms most to in obviously shareholders the when opportunistically. through shareholders,

see kind think in to income overall you that opportunity the of long-term be that market. hierarchy, We want the really the if about in focus fixed our But continues drive to reinvest right? business, to we

I this cash that continue to discipline, would enhance and to going similar that's Pragma utilizing to say of take and about One in and balance our allow would that the going at And efficiency. do technology capabilities. stack, would is to about it thing leverage it's to say it's look then bolt-on and tech we've amount really that -- across been important. we way with sheet important. expected that really to and us that add talking to rigor acquisitions, We're really I the is important which

to about. dividends that. additional is buybacks and through this flexibility now. be to what that just have And that's capital opportunistic with And return We really and third, continue we'll shareholders

Michael Our next question the comes Morgan Stanley. line Cyprys from of with

hoping with on in your information pricing. you've indexing question opportunities I was the businesses a mentioned information have. maybe past, know could elaborate technology you you services. had around to growth and that end-of-day I just some on and of drive services the key initiatives some I services

over at those to look contribution you're items months? the X revenues that next XX of curious Just are XX mix the X What you stand? guess line where some initiatives steps think I about you years? as next you sort how the And as today, over look out looking of the do those of to in to changing take

Sure. trade services Thanks, to product of some portfolio business help and bringing. portfolio, that about of of excited Michael. how bringing that And to we're our trade, times we're first, We're excited about line. construction on context we're determine Again, information to the what pretty pipeline products trade. trade really, traders a in the to when platform the many to

way more making key So we've data are about I international opportunities and obviously We do sector our high-grade, eurobonds on of local first our in is talked there's markets importantly, the exclusive its the quite data it's think to ingredients high-yield have CP+ that EM. our like very our particularly today. across platform, exciting, those data platform. some and successful products

a EM last Our sale. in where no there's broker-driven of market market. are CP+ backdrop dark These a no is markets, for TRACE, generally

important a real-time a feed is market. having a to that in dealer being client So a very or being component

opportunity for Europe. Am sector a throughout data see certainly our real-time and data we seeing do the APAC, as across great that feed and So we international in Lat in opportunities feed offer

they're both portfolios are these putting AI Tradability, any day. why and on but of products they how be Inquiry, managers can also platform, that Many that's on Selection, market, -- Dealer portfolio given X-Pro the we're construct on platform exclusively engage the traders our can CP help the like for designed

but pipeline at see the opportunity construction the of opportunity, also trader just level. we portfolio at level, not an So

move mentioned not fixed we products index that in and the strategies. fixed passive that We're you as opportunities. announced of investors income about our landscape opportunity indexes crafted just more bigger a more as and across with partnership and and income MSCI there's more market and strategies managed Separately, excited that MSCI. more to index Obviously, the with have part a partnership, we we think

which power the our for certainly of then a rapidly, a automation muni is help Not in the very about product launch muni data the it we product, And is does that in needed but real-time a new in talked exciting while, it's it market something haven't munis but us. suite only and market, new is market. finally, data in growing CP+ that for

roll we really as So heightened CP+ for a well. opportunity munis as see we out

product for opportunity again, growth very the excited of current growth, opportunities So strong well. in pipeline the and behind the about but mix the pipeline and as

the Bank line comes question of Eli Abboud next of America. from Our with

connecting TMC You specifically. to mentioned that you're

to this leverage there's income next is ICE? partnership Bonds NYSE way assets and if Or wondering ICE's was I as BondPoint to with opportunity data? step? the execution grow overlap in there fixed to enable connectivity maybe like your Could you a other So an

at ICE. Rich. it's believe in. really they not We're retail entities. mean, now, have Eli, our up connecting Yes, I Right their combined I it's over friends that X to

was one BondPoint. other The

it's think via possible could ultimately, existing But So one have. coming we well. we'll as directly that the connect into I and that pipes that we will connect be together

something doing. definitely be it's it's it's just munis, to So Again, going from from well. not as be going to we're corporates

liquidity in future. additional So tee if sure that other up I'm on will the the one they've got near venue, that's their

of We relationship rapidly. but SMA Eli, they execute come add overall great I $X areas on just they ICE to SMAs on because to the seeing deal go They're today, retail those platform We're activity and of expected like to market. large platform through institutional see And ICE. a investors, about growing also more at we I'd the see excited traditionally $X a the execution our trillion. are we importantly, opportunity the mean, trillion that comments. in

So the SMA, or through market, if our I it unique of platform. parties on coming comes retail through it this partnership in seeing traditional together overall retail both growth think leverages the whether we're like comes

it around market this yes, in about of And going what partnership. lot and view market. forward says a of our income the fixed So structure really excitement market

do Got muni overlap risks to regulatory any And execution? the you the it. in foresee arrangement given

No.

their In these well. will liquidity their their represented liquidity our X liquidity, represented be fact, and are on connectivity where our is as points on platform it's platform,

benefit a through way relationship. a commercial and connection for a our to clients technical it's So

expect we structured would the around we regulatory So partnership. any how concerns not

will our now back question-and-answer Chris I to closing session. This will turn conclude Concannon call remarks. for the

Thank market in the next Obviously, about quarter. macro and you update forward looking for excited at the joining recent you we're backdrop us the volatility, and today. to

us joining today. for thanks So

call. This concludes today's conference

now disconnect. may You